Newcrest Mining Share Price Up as It Targets Development at Havieron

Newcrest Mining Share Price Up as It Targets Development at Havieron

The share price of Australian gold mining giant Newcrest Mining Ltd [ASX:NCM] is up 5.35% or $1.52 this morning, thanks to news from its Havieron and Red Chris projects.

The price of gold also pushed higher overnight to rally 1.45% to US$1,746 per ounce.

NCM is targeting the start of development at its Havieron project in Western Australia on the back of good drilling results.

Step-out drilling (intended to expand known mineralisation) at Havieron has successfully extended the footprint of mineralisation by a further 220 metres.

Newcrest says the latest results mark the best significant intercept at the project to date.

High-grade pay dirt

Things are looking promising at the Havieron project in WA, with step-out drilling just northwest of previous drilling returning gold mineralisation of 82.1m at 2.4 grams of gold per tonne (g/t) and 0.08% copper.

Other infill drilling returned 109 metres at 6.3g/t and 0.71% copper from 668 metres.

Other results include 55.4m @ 11g/t and 0.79% copper from 676.1m and 4m @ 78g/t Au and 1.2% copper from 718m.

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The current drilling is focused on the delivery of a maiden inferred resource in the second half of the calendar year when NCM is targeting mine development.

NCM said current drilling will target lateral and depth extents up to 1,000m below the known mineralisation where there is limited drilling.

CEO Sandeep Biswas said:

At Havieron we have returned our best drill result to date and with the step out drilling result we see real potential to further expand this orebody. Getting underground is now the priority and we continue to progress the work to commence decline development by the end of this calendar year or early 2021.’

Havieron is operated by NCM under a farm-in agreement with Greatland Gold plc [LON:GGP].

Newcrest has 40% interest in the project and is now progressing Stage 3 work programs, including ongoing exploration drilling and studies to support early development options.

They can earn up to a 70% joint venture interest through expenditure of US$65 million and the completion of a series of exploration and development milestones.

Across the Pacific, the Red Chris project in British Columbia, Canada infilling drilling too has returned some solid results.

Results have confirmed continuity of high grade within East Zone, including a partial intercept of 232m at 2.6g/t and 1.5% copper and 122m at 4.5g/t and 2.3% copper.

What’s in store for gold and gold miners?

The gold price has certainly steadied over the past two months or so and has even started to retreat on some of the gains it has made.

But as the US Federal Reserve held rates at near zero and projected no rate increases until the end of 2022, gold could be on the march again.

This could be a good time to buy, considering the long-term monetary policy outlook.

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Lachlann Tierney,
For The Daily Reckoning Australia